Afentra, the upstream oil and gas company focused on acquiring production and development assets in Africa, announces that it has initialled a Risk Service Contract ('RSC') for Block KON4, located in the onshore Kwanza basin, Angola.
Afentra has been in discussions to secure an operated interest in KON4 as part of its strategy to further consolidate its position in the onshore Kwanza basin and to establish itself as an Operator in Angola. The initialling marks a significant step forward to securing Block KON4. Under the terms of the proposed KON4 RSC, Afentra will be Operator with a 35% equity interest. The Block offers both short cycle, low-cost production opportunities linked to field redevelopment alongside low-cost near-term exploration potential similar to that being pursued in KON15 and KON19. The contract will now progress through the formal governmental approval process, and the Company will provide a further update to the market once the agreement has been fully executed and signed.
About KON4
Block KON4 covers 1,387 sqkm and is situated in a historically productive area of the onshore Kwanza basin, where 11 oil and 2 gas fields have been discovered and over 90 mmboe produced to date. The block features the Quenguela Norte field - the largest onshore discovery to date - estimated to hold over 200 mmbbls of discovered oil in place. The field achieved peak production of 12,000 bopd, with 42 mmbbls recovered before it was eventually shut-in and abandoned in 1999. This represents an opportunity to unlock significant value through the reactivation of legacy oil fields, supported by modern technology and re-development techniques that have advanced considerably since the fields were last in production decades ago. In addition, the Block's proximity to the Luanda refinery and the existing road infrastructure could allow early production and export to the refinery.
KON4 also provides low-cost, near-field exploration opportunities that further enhance Afentra's footprint and strategic optionality in the onshore Kwanza basin. The three blocks together offer a complementary portfolio with exposure to a diverse range of play types - across both post-salt and pre-salt petroleum systems - as well as opportunities to appraise and re-develop multiple discovered but abandoned oil fields.
Paul McDade, Chief Executive Officer of Afentra plc, commented:
'The initialling of the KON4 RSC is a significant step in our continued strategy to build a material position in onshore Kwanza basin in Angola. While this marks the beginning of the formal approval process, we are already working closely with our partners in the contractor group to prepare for an efficient review of the block's existing oil fields and the potential for early development opportunities. In addition, we will be bringing our significant experience in the use of eFTG data, which is currently being acquired across the basin, to understand the full exploration potential of KON4 as well as our other licenses KON15 and KON19.
The addition of the KON4 license to our existing onshore licenses will represent a compelling opportunity to work with local Angolan companies to both revitalise historic oil fields with modern production and development techniques as well as understand the full exploration potential of this underexploited basin where exploration activities stopped over 40 years ago.'
Source: Afentra
